The Joint Corp. Q4 FY2025 earnings call

• Completed 6 of senior leaders with healthcare and franchise management experience. - Made progress in re-franchising, with 48 corporate-owned clinics remaining, signed asset purchase agreements for 22 clinics, entered letter of intent for 5. - Shifted marketing content to focus on chiropractic care for pain relief, shifted marketing investment to national scale and improved SEO, clinic microsites migrated to new template and traffic up. - Working on sales driving initiatives to improve comp sales by growing active member base, piloting three-tiered pricing in ~300 clinics. - Introduced patient offerings like Align One and Align 2 to address attrition. - On track to complete Joint 2.0 transformation by end of 2025, then focus on Joint 3.0 in 2027 including new channels, markets, and international expansion.

Revenue from continuing operations increased 3.1%, consolidated adjusted EBITDA increased 7.8%. Revenue grew 3% to $15.2 million in Q4 2025, with cost of revenues down 11%, selling and marketing expenses up 25%, G&A expenses up 2%. Full-year 2025 revenue was $54.9 million vs $52.2 million in 2024, consolidated net income increased to $2.9 million, adjusted EBITDA from consolidated operations increased 14% to $13 million. System-wide sales in Q4 2025 were down 3.9% to $140 million, full-year system-wide sales were flat at $532 million. Clinic count: ended 2025 with 960 clinics, opened 29, re-franchised 41, closed 36. Remaining company-owned clinics: 48 (5% of total portfolio).

• 2026 system-wide sales expected to range from 519 to 552 million. - Comp sales expected to be in range of negative 3% to positive 3%. - Consolidated adjusted EBITDA expected to be in range of $12.5 million to $13.5 million. - Clinic count at end of 2026 expected to be lower than end of 2025. - Revenue target as pure play franchisor ~11% of system-wide sales (vs 10.3% in 2025). - Post-refranchising gross margin 83-85% of revenues, G&A expense 40-42% of revenues, CapEx ~3% of revenues, free cash flow conversion 60-70%.

Q: Share attrition and new patient ad metrics.

A: Focus on active member growth, new patient flow weakest, new marketing helping but takes time, conversion and attrition slightly better than last year.

Q: Evolving marketing initiatives for 2026.

A: Continue shift from local to national, evolve creative messaging, address AI search behavior shifts, work on conversion with new operations leader, address attrition with offerings like Align One and Align 2.

Q: How did three-tiered pricing pilot go.

A: $2 increase not effective, $5 and $10 showing more benefit, testing new markets, mindful of macroeconomic climate.

Q: Comp progression throughout quarter.

A: Comps down most in Nov, best in Dec, some timing change in year-end promotions.

Q: Relative performance of remaining clinics vs sold ones.

A: California clinics better performers than Southeast.

Q: Leading indicators for comps improvement in 2026.

A: Early signs from marketing initiatives, easier comps in back half.

Q: Ai seo marketing investment cost.

A: Incremental spend, shifted local marketing dollars to national, net dollars not substantially increased.

Q: Jan-Feb comps and pricing in guide.

A: Similar trends to Q4, guide doesn't include pricing increase yet.

Q: Capital allocation priorities.

A: Invest in growth initiatives like technology projects, active negotiations on RD territories.